The US Government’s Potential Plan to Add Bitcoin to Strategic Bitcoin Reserve
The head of research at crypto asset firm Galaxy Digital, Alex Thorn, has made a bold prediction that the US government will soon incorporate Bitcoin (BTC) into its Strategic Bitcoin Reserve (SBR). This move could potentially have significant implications for the world of cryptocurrency and government financial strategies.
Possible BTC Acquisition in 2025
During an interview on Bloomberg Crypto, Thorn shared his insights on the matter, suggesting that the US government might start purchasing Bitcoin to bolster the SBR as early as 2025. He highlighted the establishment of the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile Executive Order, which he believes lays the groundwork for this anticipated development.
“In March, they had the establishment of the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile Executive Order… …which specifically prohibited the government from selling Bitcoin and ordered the [Departments of] Commerce and Treasury to find out budget-neutral ways to buy Bitcoin while simultaneously prohibiting them from buying altcoins and leaving the management up to those departments for altcoins.
I think a lot of progress has been made… And you’ve got Treasury Secretary Scott Bessent literally saying Bitcoin is now becoming a store of value. You’ve got a drumbeat from Bo Hines [Executive Director of the President’s Council of Advisers on Digital Assets] and David Sachs [White House AI and crypto czar]. And it just seems plausible at this point, they will buy something. There will be a buy.”
Strategy for Budget-Neutral Bitcoin Acquisition
Thorn also outlined a potential strategy for the US government to acquire Bitcoin in a budget-neutral manner for the SBR. He suggested selling certain altcoins from the sell-only digital asset stockpile for Bitcoin, without the need for cash transactions.
“What you could do is the altcoins that are in the sell-only digital asset stockpile, you could sell some of those for Bitcoin…
To be specific, you could sell an altcoin in an altcoin/BTC pair and never touch cash at all. No cash ever has to flow into the [US] general treasury. Could be an easier way to get to a ‘promises made, promises kept’ on the SBR.”
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Conclusion
With the potential inclusion of Bitcoin in the US government’s Strategic Bitcoin Reserve, the cryptocurrency landscape could experience a significant shift. As the government explores new ways to diversify its assets, the adoption of Bitcoin could signal a growing acceptance of digital currencies in traditional financial systems.
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